The challenges imposed by the rising cases of unemployment, inflationary rate and less purchasing power in households have stirred considerable interest amongst researchers and actors in contemporary times in designing agreeable mechanism that engenders economic growth. This paper examined the impact of unemployment, inflation and household’s consumption on economic growth for 1960 to 2018. OLS estimation technique was adopted. From the findings, unemployment, inflation and household’s consumption impacted on economic growth. But it was observed that inflation (INF) significantly influence economic growth in Nigeria. However, controlling for the influence of consumer price index (CPI), we observed that it is a key determinant of economic growth. The study therefore recommends for efficient and effective policy mix that may monitor the inflation rate in Nigeria.
| Published in | International Journal of Business and Economics Research (Volume 10, Issue 6) |
| DOI | 10.11648/j.ijber.20211006.16 |
| Page(s) | 258-266 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2021. Published by Science Publishing Group |
Unemployment, Inflation, Consumption, Households, Economic Growth
| [1] | Abdulsalam and Abdullahi (2016), “Impact of Unemployment and Inflation on Economic Growth in Nigeria” International Journal of Business and Economic Science and Applied Research, Vol. 9, No. 1. |
| [2] | Abid H. et al (2018),” Impact of Macroeconomic Variables on GDP” Evidence from Pakistan European, Journal of Business and Innovation Research, Vol. 4, No. 3. |
| [3] | Ademola, S. and Badiru, A. (2016, “Theimpact of unemployment and inflation on economic growth in Nigeria” International Journal of Business and Economic Sciences Applied Research, Vo. 1, No 1. |
| [4] | Agwu, (2015), “Factors that contribute to economic growth in Nigeria” International Journal of Management and Commerce Innovations, Vo. 2, No. 2 in order. |
| [5] | Akeju, K. F. and Olanipeun, D. B. (2014), “Unemployment and economic growth in Nigeria” Journal of Economics and Sustainable Development, Vol. 5, No. 4. |
| [6] | Akgul I. and Ozdemir S. (2012), “Inflation threshold and the effects on economic growth” ʽIktisat Is-letmeveFinans; Vol. 27, No. 313. |
| [7] | Akutson S. et al (2018), ”The Impact of Unemployment on Economic Growth in Nigeria” An Application of Autoregressive Distributed Lag (ARDL) Bound Testing, Sumerianz Journal of Business Management and Marketing, Vol. 1, No. 2. |
| [8] | Alhdiy, F. M. (2015), “Short and long term relationship between economic growth and unemployment in egypt: An empirical analysis” Mediterranean Journal of Social Sciences, Vol. 6, No. 4S3. |
| [9] | Andreas, (2018), “Household consumption patterns and the sectoral composition of growing economies” A review of the interlinkages, UNIDO Report. |
| [10] | Anidiobu, et al (2018), “Analysis of Inflation and Its Effect on Economic Growth in Nigeria” IOSR Journal of Economics and Finance (IOSR-JEF), Vol. 9, No. 1. |
| [11] | Atan, J. A (2013),”Tax policy, Inflation and Unemployment in Nigeria” European Journal of Business and Management, Vol. 5, no 15. |
| [12] | Aydin, et al (2016), “Inflation and Economic Growth” A Dynamic Panel Thresh-old Analysis for Turkish Republics in Transition Process; Procedia-Social and Behavioral Sciences, Vol. 229. |
| [13] | Ayyoub et al (2011), “Does Infation Affects Economic Growth”? Journal of Social Sciences, (PJSS), Vol. 31, No. 1. |
| [14] | Bakare, H. et al (2015), “Effects of inflation rate on economic growth in Nigeria”. Developing Country Studies, Vol. 5, No. 8. |
| [15] | Barro (2013), “Inflation and economic growth” Annals of Economics and Finance, Vol. 14, No. 1. |
| [16] | Bello, M. and Auwal, A. (2015),” Do Unemployment and Inflation Substantially Affect Economic Growth”? Journal of Economics and Development Studies, Vol. 3, No. 2. |
| [17] | Bhattarai, K. (2016), “Unemployment–inflation trade-offs in OECD countries.” Economic Modelling. |
| [18] | Blanchard, O. and Illing, G. (2009), “Makrookonomie: Pearson deutchland GmbH. |
| [19] | Blinov, S. (2017), “Инфляция и экономическийрост [Infliatsiya i ekonomicheskiyrost” (MPRA Paper No. 78087). Retrieved from https:// mpra.ub.uni-muenchen.de/78087. |
| [20] | Chizonde, B. (2016), “The Macroeconomic Determinants of Economic Growth in Zambia” Do Copper prices matter? Unpublished manuscript in Department of Economics University of Dar es Salaam. |
| [21] | Chughtai and. Aftab (2015), “Impact of major economic variables on economic growth of Pakistan” Deta Universitatis Danubius, Vol. 11, No. 2. |
| [22] | Diellza K. (2018), “Impact of Unemployment on Economic Growth” Evidence from Western Balkans, European Journal of marketing and Economics, Vol. 1, No 1. |
| [23] | Engle, R. F., and Granger, C. W. J. (1987). Cointegration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55, pp. 252-76. |
| [24] | Foluso and Nicholas (2017), “Inflation and Economic Growth” A Review of the International Literature, Comparative Economic Research, Vol. 20, No. 3. |
| [25] | Fuad, M. K. (2011), “Economic growth and unemployment: An empirical analysis” Journal of Social Sciences, Vol. 7, No. 2. |
| [26] | Geidenhuys, J. and Marinkov, M. (2007), “Robust Estimates of Okun’s Coefficient for South Africa,” Working Paper. |
| [27] | Gregory, A. W. and B. E. Hansen. 1996. “Tests for Cointegration in Models with Regime and Trend shifts.” Journal of Econometrics, 70, 1: 99-126. |
| [28] | Handriyani, RSahyar, A. (2018), “Analysis of the effect of household consumption expenditure, investment and labor to economic growth” A case in Province of North Sumatra. |
| [29] | Hemming, R. (1991), “Public expenditure, Stabilization, and structural adjustment In public expenditure handbook” A guide to public policy in developing countries. Key-young Chu and Richard Hemming, eds: Washinton, D.C.: I.M.F. |
| [30] | Hussain, A. et al, (2016), “Impact of macroeconomic variables on GDP: Evidence from Pakistan “European Journal of Business and Innovation Research, Vol. 4, No. 3. |
| [31] | Inyiama. O. I (2013), “Does inflation Weaken Economic Growth” Evidence from Nigerian; European Journal of Accounting, Auditing and Finance Research, Vol. 1, No. 4. |
| [32] | Johansen, S. and K. Juselius. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money, Oxford Bulletin of Economics and Statistics, 52, pp. 169-210. |
| [33] | Jones, L. E. and Manuelli, R. E (2001), “Growth and the effects of inflation”. National Bureau of Economic Research, Paper 4523. |
| [34] | Kwaitkowski, D., Phillips, P. C. B., Schmidt, P., and Shin, Y. (1992). “Testing the NullHypothesis of Stationarity against the Alternative of a Unit Root,” Journal ofEconometrics, 54: 159-78. |
| [35] | Lee, J. (2000), “The robustness of okun’s law evidence from oecd countries” Journal of Macroeconomics, Vol. 22, No. 2. |
| [36] | M. et al (2018), “Inflation and economic growth: the search for a compromise for the Central Bank’s monetary policy” Banks and Bank Systems, Vol. 13, No. 2. |
| [37] | Michael H. and Susann R. (2016), “Consumption Smoothing During the Financial Crisis” The Effect of Unemployment on Household Spending, Ann Arbor, MI. University of Michigan Retirement Research Center (MRRC) Working Paper, WP 2016-353. http://www.mrrc.isr.umich.edu/publications/papers/pdf/wp353.pdf. |
| [38] | Miftahu I & Rosni B. (2017), “The Relationship Between Inflation and Economic Growth in Nigeria” A Conceptual Approach, Asian Research Journal of Arts & Social Sciences, Vol. 3, No. 1. |
| [39] | Mosikari, T. J (2013), “The Effect of Unemployment Rate on Gross Domestic; Case Study of South Africa” Mediterranean Journal of Social Science. Vol. 4, No. 6. |
| [40] | Njoku, A. and Ihugba, O. (2011), “Unemployment and Nigerian economic growth “Proceedings of the 20011 international conferences on teaching, learning and charge. |
| [41] | Nwankwo (2017), “Director’s general statement, Debt Management Office”Annual Report and Statement of Accounts, (DMO). |
| [42] | Nyiama, O. I. (2013). DoesInflation Weaken Economic Growth?, Evidence from Nigeria. European Journal of Accounting Auditing and Finance Research, Vol. 1, issue 4, pp. 139-150. |
| [43] | Ogueze, V. C and Odim, O. K (2015), “The cost of Unemployment and its effects on GDP Growth in Nigeria” World Applied Science Journal, Vol. 33, No. 1. |
| [44] | Olawunmi and Adedayo (2017), “Unemployment and Economic Growth in Nigeria in the 21st Century: VAR Approach,” AUDŒ, Vol. 13, No. 5. |
| [45] | Onwachukwu, C. I. (2015), “Does Inflation Significantly Impact on Economic Growth in Nigeria?” Global Journal of Human Social Scienceof Economics, Vol. 15, No. 8. |
| [46] | Philip, A. et al (2013), “Strategy for reducing unemployment in Nigeria: The role of informal sectors” International Journal of Capacity Building in Education and Management, Vol. 2, No. 1. |
| [47] | Roberto, B. et al (2014), “Consumption, investment and unemployment” SVAR tests of the effects of changes in the consumption-saving pattern; Journal homepage: https://www.tandfonline.com/loi/oaef20. |
| [48] | Semuel and Nurina (2015), “Analysis of the effect of inflation, interest rates and exchange rates on gross domestic product (GDP) in Indonesia” International Conf. on Global Business, Economics, Finance and Social Sciences. |
| [49] | Sergii, P. (2009), “Inflation and Economic Growth: The Non-Linear Relationship. Evidence from CIS Countries, MA Thesis in Economics, Kyiv School of Economics. |
| [50] | Seth, A. et al (2018), “The Impact of Unemployment on Economic Growth in Nigeria” An Application of Autoregressive Distributed Lag (ARDL) Bound Testing. |
| [51] | Shwilima, A. (2015), “Economic growth and nonrenewable resources” An empirical investigation Tokyo, Waseda Institute of Political Economy. |
| [52] | Sodipe, O. A. (2008), “Employment and economic growth in Nigeria; An unpublished M.Sc. Research presented to the college of business and social science, Covenant university, Ota, Ogun State. |
| [53] | Suleiman, A. M. et al, (2019), “Effect of Unemployment and Inflation on Economic Growth in Nigeria” Dutse Journal of Economics and Development studies (DUJEDS), Vol. 7, No. 1. |
| [54] | Sunusi, Y, and Muhammad, T. (2017), “An Analytical Study of the Impact of Unemployment on Economic Growth in Nigeria” IOSR Journal Of Humanities And Social Science, Vol. 22, No. 1. |
| [55] | Thomas, P. (2012), “The Economics of Phillips Curve: Formation of Inflation Expectation Versus Incorporation of Inflation Expectation” Structural Change and Economic Dynamics, Vo. 23. |
| [56] | Umoru, D. and Anyiwe, M. A. (2013), “Dynamics of Inflation and Unemployment in a Vector Error Correction Model” Research on Humanities and Social Sciences, Vol. 3, No. 3. |
| [57] | UNs Reports (2019), “World Economic Situation and Prospects. |
| [58] | Vikesh and Subrina (2004), “Relationship between Inflation and Economic growth, Working Paper. |
| [59] | Vinayagathasan T. (2013), “Inflation and economic growth: A dynamic panel threshold analysis for Asian economies” Journal of Asian Economics, Vol. 26. |
| [60] | Volodymyr, M. et al (2018), “Inflation and economic growth: the search for a compromise for the Central Bank’s monetary policy” Banks and Bank Systems, Vol. 13, No. 2. |
| [61] | World Bank (2012). World Development Indicators: http://data.worldbank.org/country/hungarycators. |
| [62] | World Bank (April 6, 2017), “Faster Growth Brings More Jobs to the Western Balkans: Skopje. |
| [63] | Yeasean et al (2019), “Impact of Macroeconomic Variables on economic Growth in Bangladesh” Information Management and Computer Science (IMCS), Vol. 2, No. 1. |
| [64] | Yesufu, T. M. (2000), “The Human Factor in National Development: Business and Economics, Nigerian Spectrum Books Ltd, Ibadan. |
APA Style
Felicia Abada, Charles Manasseh, Ogochukwu Okanya, Nnenna G. Nwonye, Ngozi Mabel Nwekwo, et al. (2021). Impact of Unemployment, Inflation and Households Consumption on Economic Growth. International Journal of Business and Economics Research, 10(6), 258-266. https://doi.org/10.11648/j.ijber.20211006.16
ACS Style
Felicia Abada; Charles Manasseh; Ogochukwu Okanya; Nnenna G. Nwonye; Ngozi Mabel Nwekwo, et al. Impact of Unemployment, Inflation and Households Consumption on Economic Growth. Int. J. Bus. Econ. Res. 2021, 10(6), 258-266. doi: 10.11648/j.ijber.20211006.16
AMA Style
Felicia Abada, Charles Manasseh, Ogochukwu Okanya, Nnenna G. Nwonye, Ngozi Mabel Nwekwo, et al. Impact of Unemployment, Inflation and Households Consumption on Economic Growth. Int J Bus Econ Res. 2021;10(6):258-266. doi: 10.11648/j.ijber.20211006.16
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ijber.20211006.16,
author = {Felicia Abada and Charles Manasseh and Ogochukwu Okanya and Nnenna G. Nwonye and Ngozi Mabel Nwekwo and Shammah E. Shimmah and Oluseun Paseda},
title = {Impact of Unemployment, Inflation and Households Consumption on Economic Growth},
journal = {International Journal of Business and Economics Research},
volume = {10},
number = {6},
pages = {258-266},
doi = {10.11648/j.ijber.20211006.16},
url = {https://doi.org/10.11648/j.ijber.20211006.16},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211006.16},
abstract = {The challenges imposed by the rising cases of unemployment, inflationary rate and less purchasing power in households have stirred considerable interest amongst researchers and actors in contemporary times in designing agreeable mechanism that engenders economic growth. This paper examined the impact of unemployment, inflation and household’s consumption on economic growth for 1960 to 2018. OLS estimation technique was adopted. From the findings, unemployment, inflation and household’s consumption impacted on economic growth. But it was observed that inflation (INF) significantly influence economic growth in Nigeria. However, controlling for the influence of consumer price index (CPI), we observed that it is a key determinant of economic growth. The study therefore recommends for efficient and effective policy mix that may monitor the inflation rate in Nigeria.},
year = {2021}
}
TY - JOUR T1 - Impact of Unemployment, Inflation and Households Consumption on Economic Growth AU - Felicia Abada AU - Charles Manasseh AU - Ogochukwu Okanya AU - Nnenna G. Nwonye AU - Ngozi Mabel Nwekwo AU - Shammah E. Shimmah AU - Oluseun Paseda Y1 - 2021/12/24 PY - 2021 N1 - https://doi.org/10.11648/j.ijber.20211006.16 DO - 10.11648/j.ijber.20211006.16 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 258 EP - 266 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20211006.16 AB - The challenges imposed by the rising cases of unemployment, inflationary rate and less purchasing power in households have stirred considerable interest amongst researchers and actors in contemporary times in designing agreeable mechanism that engenders economic growth. This paper examined the impact of unemployment, inflation and household’s consumption on economic growth for 1960 to 2018. OLS estimation technique was adopted. From the findings, unemployment, inflation and household’s consumption impacted on economic growth. But it was observed that inflation (INF) significantly influence economic growth in Nigeria. However, controlling for the influence of consumer price index (CPI), we observed that it is a key determinant of economic growth. The study therefore recommends for efficient and effective policy mix that may monitor the inflation rate in Nigeria. VL - 10 IS - 6 ER -
Information
Email: